DOT Issuing Final Rule on Air Charter Brokers, Air Charter Industry

The U. S. Department of Transportation (DOT) is issuing a Final Rule on the role of Air Charter Brokers and consumer disclosures applying to Air Charter Brokers, air taxis and commuter air carriers, and unfair or deceptive practices or unfair methods of competition.

Timeline; in 2007 the DOT published an Advanced Notice of Proposed Rulemaking (ANPRM), took public comments, and in 2013 issued a Notice of Proposed Rulemaking (NPRM) and took public comments.

Published by document in the Federal Register Sept. 17, the DOT is issuing a Final Rule “to facilitate innovation and growth in the air charter industry while strengthening the legal protections provided to consumers of charter air transportation.”

The rule has a publish date of 09/17/2018 and becomes effective 02/14/2019.

DOT Final Rule Main Points

According to the document, the final rule:

Codifies and allows ‘‘air charter brokers’’ as principals or bona fide agents to provide single entity charter air transportation of passengers.

Requires air charter brokers to make certain disclosures including those responsive to a National Transportation Safety Board (NTSB) recommendation and to make other disclosures upon request.

Enumerates certain practices by air charter brokers as prohibited unfair or deceptive practices or unfair methods of competition.

Requires air taxis and commuter air carriers that sell charter air transportation to make certain disclosures including those responsive to an NTSB recommendation and other disclosures upon request.

enumerates certain practices by an air taxi or commuter air carrier as prohibited unfair or deceptive practices or unfair methods of competition.

According to the document, The DOT is not adopting a proposal to codify exemption authority allowing indirect air carriers to engage in the sale of air transportation related to air ambulance services. Nor is it adopting a proposal to codify certain air transportation services performed under contract with the Federal Government.

The DOT’s final rule document includes each DOT-proposed rule, summary of comments on the rule, and the final DOT Response. It is published here in the Federal Register with a date of 09/17/2018. The pdf “official electronic format” is published here.

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